фото показано с : invezz.com

Silvergate Capital Corporation (NYSE:SI) and its wholly-owned crypto-focused subsidiary Silvergate Bank, recorded a more than $1 billion net loss during the fourth quarter of 2022, according to financial results the company reported on Tuesday.

According to the banking provider, the net loss for the three months ending 31 December 2022 was approximately $1.05 billion. The loss is “attributable to common shareholders”, the company posted, with this coming in at a $33.16 loss per common share during the quarter.

Comparatively, Silvergate reported a net income of $40.6 million in Q3, 2022, with this at $1.28 per diluted share. The net income was $18.4 million, or roughly $0.66 per diluted share during the fourth quarter a year ago.

Silvergate is navigating the aftermath of a brutal crypto winter and the recent turbulence fueled by the FTX crypto exchange collapse. Indeed, the company is facing a class action lawsuit filed against it for its business deals with the bankrupt crypto exchange.

As Invezz highlighted earlier this month, the Silvergate shares plummeted 50% as the crypto-focused bank reported significant customer withdrawals. The mounting outflows and a hit to the balance sheet forced the banking operator to cut its workforce.

In its latest financial report, the firm notes a decline in average crypto deposits in Q4, 2022.

Per the report, digital asset deposits for the quarter stood at around $7.3 billion, down from $12 billion in Q3, 2022. Digital asset customers decreased to 1,620 as of 31 December, 2022, slightly down from 1,677 as at 30 September, 2022.

As for the Silvergate Exchange Network (SEN), total transfers processed during the quarter was $117.1 billion, showing a 4% increase from the $112.6 billion handled in the third quarter. However, the Q4, 2022 figures showed a marked 47% decrease from the $219.2 billion SEN handled during Q4, 2021.

Despite the blow to income as witnessed across the market, Silvergate remains committed to its core business.

Alan Lane, CEO of Silvergate, said in a statement:

“While we are taking decisive actions to navigate the current environment, our mission has not changed. We believe in the digital asset industry, and we remain focused on providing value-added services for our core institutional customers. To that end, we are committed to maintaining a highly liquid balance sheet with a strong capital position.”

The post Silvergate reports $1 billion net loss amid significant outflows appeared first on Invezz.

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